AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Watford Re Ltd. (Watford Re) (Bermuda) and its subsidiaries, Watford Insurance Company Europe Limited (WICE) (Gibraltar), Watford Insurance Company (WIC) (New Jersey) and Watford Specialty Insurance Company (WSIC) (New Jersey) is currently under review with negative implications. In addition, AM Best has commented that the Long-Term ICR of “bbb-” of Watford Holdings Ltd. (Watford), the group’s ultimate holding company, is currently under review with negative implications.
The under-review status will be evaluated in due course, and will consider the announcement that Arch Capital Group Ltd., [NASDAQ: ACGL] (Arch) has entered into a definitive agreement with the group’s ultimate holding company, Watford, to acquire all of the common shares of Watford in an all-cash transaction valued at approximately $622 million. Following closing, which is expected to occur in the first quarter of 2021, Watford will continue to operate as a standalone business and remain consolidated within Arch’s financials.
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